IMF: Trade war would slow but not stop global growth
Updated: 2018-10-09 17:04
An all-out trade war would slow the growth of the global economy, but not stop its expansion, with the United States and China also escaping a recession, according to forecasts published on Oct 9 by the International Monetary Fund, reported by Agence France-Presse.
The IMF conducted a series of calculations of the impact from the trade tariffs that the administration of US President Donald Trump has already implemented and has threatened to impose, as well as reprisals from China and other countries, in its latest World Economic Outlook report.
The IMF's baseline forecast for the global economy is 3.7 percent growth in 2018, 2019 and 2020.
The report predicted that, at worst, which includes Trump pushing through with tariffs on all Chinese goods and on imports of cars and car parts that spark a round of reprisals, as well as denting confidence and provoking a negative market reaction, the impact would be less than 1 percentage point on global growth.
Thus the expansion of the global economy would be reduced to about 2.9 percent both next year and in 2020.
An all-out trade war would slow the growth of the global economy, but not stop its expansion, with the United States and China also escaping a recession, according to forecasts published on Oct 9 by the International Monetary Fund, reported by Agence France-Presse.
The IMF conducted a series of calculations of the impact from the trade tariffs that the administration of US President Donald Trump has already implemented and has threatened to impose, as well as reprisals from China and other countries, in its latest World Economic Outlook report.
The IMF's baseline forecast for the global economy is 3.7 percent growth in 2018, 2019 and 2020.
The report predicted that, at worst, which includes Trump pushing through with tariffs on all Chinese goods and on imports of cars and car parts that spark a round of reprisals, as well as denting confidence and provoking a negative market reaction, the impact would be less than 1 percentage point on global growth.
Thus the expansion of the global economy would be reduced to about 2.9 percent both next year and in 2020.
